The 36-year-old was arrested on suspicion of drink driving after the crash in Esprick left three people in hospital.
The crash involved a van and a Lexus at the junction of Fleetwood Road (A585) and Greenhalgh Lane, near the Shell garage, at 6.45am.
A man in his late 20s was taken by ambulance crews to Royal Preston Hospital's major trauma centre with serious chest injuries.
Cleveleys gym 100% Muscle Fitness raided by police and two men arrested
Blackpool FC training ground plans pass first hurdle
Blackpool grandma, 76, conned out of £20,000 by cruel fraud who tricked her into sending cash disguised as Christmas present
‘Devoted’ Blackpool mum, 29, found dead in bed by her boyfriend
Lytham St Annes care home boss appears in court after death of residents
Two other casualties were also been taken to hospital, one suffering an arm injury and the other minor injuries.
The 36-year-old driver of one of the vehicles, a woman from Preston, was arrested at the scene and taken into custody on suspicion of drink driving.
She has since been released without charge, but remains under investigation.
Fleetwood Road was closed both ways for nearly three hours, between Mile Road and the M55, leading to traffic delays.